Estimate your Act 60 tax under Act 38-2026
Under Act 38-2026, an Act 60 individual resident investor decree applied for by December 31, 2026 keeps a 0% rate on interest, dividends and post-residency capital gains. Applications filed from January 1, 2027 pay 4%. Appreciation that accrued before you became a resident and is recognized 10 or more years later is taxed at 5% in both cases. The rate depends on the application date, not the decree issue date.
Act 38-2026: 0% versus 4%
| Income type | Applied by Dec 31, 2026 | Applied from Jan 1, 2027 |
|---|---|---|
| Interest and dividends | 0% (through 2035) | 4% (through 2055) |
| Post-residency capital gains | 0% (through 2035) | 4% (through 2055) |
| Pre-residency appreciation, recognized 10+ years after residency | 5% | 5% |
Act 38-2026 was signed in March 2026 and extends the Individual Resident Investor program from 2035 to 2055. Applicants from 2027 must show they were not Puerto Rico residents for at least six years before relocating and must have the title of their principal residence recorded or pending recordation. The $10,000 annual charitable contribution and annual reports to DDEC continue. Source: law-firm summaries of Act 38-2026 (DLA Piper, Procopio, Reichard & Escalera). Confirm the details against the official text and with your tax advisor.
Frequently asked questions
What is the Act 60 tax rate in 2027?
Applications filed from January 1, 2027 are subject to 4% on interest, dividends and post-residency capital gains, versus 0% for applications filed by December 31, 2026.
What is the Act 60 deadline?
December 31, 2026 is the filing date for the 0% rate under Act 38-2026.
Does Act 60 apply to capital gains?
Post-residency capital gains are covered at 0% or 4% depending on the application date. Pre-residency appreciation recognized 10 or more years after residency is taxed at 5%. Eligibility depends on your decree and residency; consult a tax professional.
What are the Act 60 requirements?
Bona fide Puerto Rico residency, a principal residence purchased within two years of the decree, annual DDEC reports and a $10,000 annual charitable contribution. This calculator does not determine eligibility.
This information is educational and not legal, tax or investment advice.